Home prices rose by 21.4% year over year in February in Portsmouth, New Hampshire, and by 20.1% in Deltona, Florida. These are the two U.S. cities with the highest price growth over the 12 months, according to data reported last week by real estate brokerage Redfin.
Rounding out the five cities where prices rose the most in February are Tampa, Florida (18.8%); Jacksonville, Florida (18.7%); and Ogden, Utah (17.2%). Prices declined in four U.S. metro areas: Baton Rouge, Louisiana (4.2%); Wilmington, Delaware (2.5%); Honolulu, Hawaii (1.0%); and Pittsburgh, Pennsylvania (0.8%).
The median national sales price rose 7.2% year over year to $260,900 and was the strongest February price appreciation in three years. February was also the 60th consecutive month for home price appreciation since housing market rebound began.
Redfin's chief economist, Nela Richardson, noted:
While great for homeowners, continuously strong price growth across the U.S. since 2012 has posed significant challenges for first-time buyers, especially given such low supply in affordable price-tiers. There is a silver lining on the horizon, however. Rising prices and increased equity may tip the scales for homeowners who have been delaying their decision to move up, which could add much-needed starter-home inventory to the market.
U.S. housing inventory for sale totaled just four months of supply in February, down 0.6% year over year. Home sales rose just 1.8% compared with February 2015, constrained by lack of inventory. Inventories fell the most in Rochester, New York (42.4%); Buffalo, New York (37.8%); Seattle, Washington (35.3%); and Omaha, Nebraska (34.7%). Available inventory rose the most in Provo, Utah (30.7%); Knoxville, Tennessee (21.6%); and New Orleans, Louisiana (16.1%).
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The U.S. median number of days on the market was 60, but homes in Seattle sold in just 12 days. Other cities where homes sold way below the national average were Oakland, California (15 days); Denver, Colorado (18 days); San Jose, California (21 days); and San Francisco, California (28 days).
In San Jose, 63.1% of homes sold for more than the list price, just above 62.0% in San Francisco. Other metro areas where sale prices were above list prices were Oakland (59.1%); Seattle (49.3%); and Tacoma, Washington (36.3%). In Kansas City, Missouri, no homes sold for more than the asking price.
More statistics and details are available at the Redfin website.